Experts suggest that geopolitical tensions, weakness in rupee and expectations of Fed rate cut will continue to support bullion prices in near future.
In the international market, spot gold was 1.2 percent higher at $1,506.87 per ounce, and on track to mark its biggest one-day percentage gain since Aug. 23
On MCX, October gold futures traded 0.20 percent lower at around Rs 37,675 per 10 gram, down Rs 75. It has fallen more than Rs 2000 from last week's highs of Rs 39,885.
A peculiar pattern of gradual recovery post sharp decline is observed within the index as the broader structure continues to be rangebound since 28th August.
The index has formed a Hammer candlestick pattern on the weekly charts which indicates a bullish bias and is likely to test the neckline of 11,100-11,150 zone.
Waning global economic outlook amid increased trade and currency war tensions and elevating geopolitical worries continued to boost gold’s safe haven demand.